The deterioration will add further pressure on equities, after a combination of weak economy, modest earnings and growing geopolitical tensions has led to a months-long slump since May. While calls are growing for Beijing to take bolder steps to revive growth, investors are doubting the longer-term attractiveness of Chinese stocks with deep-rooted issues including the state’s control over the private sector sapping their appeal.
Chinese stocks trading in Hong Kong look primed for losses on Monday following a poor set of economic data that’s deepened scepticism over any near-term market recovery.
Figures released Saturday showed Chinese factory output, consumption and investment all slowed more than forecast for August, while the jobless rate unexpectedly rose to a six-month high. Home prices declined from the previous month.
